BS 6100 Strategic Management Individual Assignment The individual assignment is worth 60% of the module mark. To encourage better understanding of the course, and to aid students prior to the...

BS 6100 Strategic Management
12
REPORT
BS6100-Strategic Management
Kingston Business School
Student ID:
Student Name:
Lecturer’s Name:
Word Count: 3000 +/-10%
Referencing: Harvard
List of tables
1. Executive Summary....................................................................................................................3
2. Introduction.................................................................................................................................4
3. Analysis of Value Chain of Lazada............................................................................................5
4. Identify key competencies of Lazada and justify how the company capitalises its strengths to gain its competitive advantage in Singapore ..........................................................................................6
5. Conduct a macro environmental scan of a new market of your choice.......................................6
6. You are to consider the strengths of the top 3 eCommerce companies in the new market of your choice and explain how Lazada can compete effectively against the incumbents.......................7
7. Consider the different mode of entry available, you are to choose the most desirable mode of entry for Singtel and justify your choice ...............................................................................................8
8. Conclusion.....................................................................................................................................9
9. Reference list................................................................................................................................10
Executive summary
The report aims to analyze and study the different dimensions of strategic management in Lazada eCommerce Company. The report researches the main parameters responsible for the success of LAzada in various parts of South East Asia market. According to macroeconomic factors relevant to the market of Indonesia and Singapore, the report presents an overview of all the dimensions related to the company.
We aim to answer five questions in this report. First question analyzes the value chain of Lazada, Second question determines the core competencies of the company and justifies how it utilizes its strength to gain competitive advantage in Singapore. Third question performs macro environmental scan of Indonesia’s market. Fourth question enlists the strengths of 3 leading e commerce companies in Indonesia, and explains how Lazada can compete efficiently with those incumbents. Fifth and the last question summarize the most desirable mode of entry for Singtel Company in Indonesia.
The conclusion provides summary of whole report.
Introduction
Lazada is a leading eCommerce Company providing online shopping facility to all its customers, successfully since 2012. The company operates in various parts of South East Asia like Singapore, Vietnam, Thailand, Philippines, Malaysia and Indonesia. The company offers a wide range of products like toys, sports, electronics, groceries and other household products. The Company supports sale and services from 135000 sellers (local and international) and 3000 brands in the region.
Lazada offers various payment modes like Cash on delivery and hassle free returns through efficient customer care services.
1. Analysis of value chain of Lazada
    Seller
    Platform
    Warehouse
    Delivery
    Customer
    Owned/Third Party
    B2C
    Owned/Third party
    Owned/Third party
    Local
    Local or International
    Store/ Market
    Cost driver
    Cost driver
    International
    
    Drivers
    
    Overseas
    
    
    Pricing
    Model
    Local
    
    
    Inventory management
    Hub and Spoke
    Mode of delivery
    
    
    CMS
    
    Courier
    
    
    Currency
    Custom Packing,
    Post
    
    
    Payment modes
    Storage, pick up
    Self pickup
    
    
    Marketing
    packing
    
    
    
    Language
    returns
    Return
    
    
    Customer care
    Next day delivery
    Cost Depends on size and payment)
    
The activities of the company can be broken into Primary operations and Support operations. The company creates value by minimizing the cost of buyer, providing good quality, and faster response to problems.
Porter’s Five forces model
1. Rivalry between existing competitors: Lazada has major competition from e-Commerce companies like Ebay, Rakuten, Zalora, Reebonz, Zilingo, Orami and Amazon. However the most prominent threat at present is from the presence of Amazon in South east Asian market. According to Aimone Ripa, the co founder and chief market officer of Lazada, “The company has an advantage of having on the ground knowledge about its six regional markets of operation, its extended logistic network, and backup from Alibaba group” (Choudhury 2017).
Lazada has a very unique approach in business strategy. They have highly experienced teams working in an organic manner with complete knowledge of market. They know the peculiarities of each regional market at the best, and this unique property cannot be easily copied up. Doing business in Malaysia is very different than doing business in Singapore. And the different in south East Asian market is beyond the languages and cultural differences. Each country has different infrastructure, the behaviour of local companies varies a lot, affecting courier services and delivery. At present, Lazada has nearly 100 logistics partners in South East Asia. The delivery mechanism of the company works in two ways: Control tower and last mile delivery, delivering the products most efficiently.
2. Customers or Buyer power: Lazada serves more than 560 million customers in its region and the number is continuously increasing with time. The company has established itself in the local market of South East Asia very effectively. Bargaining power of Buyers is also very high with less switching cost and low loyalty level. It makes the leading companies who have given consistently good quality to customers, to gain the confidence of buyers. Although amazon has a good brand image with great history of quality services throughout the world market but Lazada...